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DEFINITION of 'Federal Poverty Level-FPL'. The set minimum amount of gross income that a family needs for food, clothing, transportation, shelter and other necessities. In the United States, this level is determined by the Department of Health and Human Services. FPL varies according to family size. The number is adjusted for inflation and reported annually in the form of poverty guidelines. Public assistance programs, such as Medicaid in the U.S., define eligibility income limits as some percentage of FPL.
According to the National Center for Children in Poverty,  16 percent of children (20 percent of children under age six) in America live in poverty. The child poverty rate in America is often two to three times higher than that of other major industrial nations. Poverty is defined as living in families with incomes below the federal poverty line ($21,200 for a family of four in 2008).